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2015 (10) TMI 1470 - AT - Income TaxAddition on 'speculation loss' - the same was not eligible for set off against the business income of the appellant as held by CIT(A) - whether the impugned transaction is of speculative in nature or not? - Held that:- One of the tests to determine whether the transaction is done with an intention to speculate and make profit from the rate fluctuation is to see whether the assessee has sufficient funds to make the payment for purchases. If the assessee does not have money to make the payment for purchases, then the conduct of the assessee is suggestive of speculation. Undisputedly, the purchase and sales are supported by respective invoices. The transactions have also been confirmed by the respective parties. However, at the same time we find that the impugned transactions have not been verified by the AO from the respective parties which is a clear distinguishing factor from the facts of the decision relied upon in the case of Mobile Trading & Investment Pvt. Ltd. (2015 (6) TMI 637 - ITAT MUMBAI). In that case the parties were produced before the AO . We also find that in that case the AO has issued summons u/s. 131 of the Act to the dealers from whom the assessee claimed to have purchases and sales, such investigations are not made in the present case. Therefore, in the interest of justice and fair play, we restore this issue to the file of the AO. The AO is directed to verify the impugned transactions from the respective parties by making verifications from their end as per the provisions of the law. The AO is also directed to verify whether the assessee was having sufficient funds to make the first purchase and decide the issue afresh after giving reasonable and fair opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purpose.
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